Profit patterns across American agriculture

  • Blank S
  • Erickson K
  • Moss C
  • 11

    Readers

    Mendeley users who have this article in their library.
  • 8

    Citations

    Citations of this article.

Abstract

To remain viable, agriculture in each location must offer returns that are competitive with those from alternative investments and sufficient to cover producers' financial obligations. Economic theory says that rates of return converge over time as resources flow into more-profitable industries-and out of less-profitable industries, causing factor price changes. Both traditional growth and trade theories say factor markets will adjust to equalize commodity returns over time. This study examines spatial relationships in agriculture's profitability over time. Results show temporal and spatial convergence of returns consistent with trade and development theories. However, there are profit patterns unique to state/regional agriculture, raising policy implications.

Author-supplied keywords

  • "Risk of ruin"
  • Convergence
  • Return on assets

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Steven C. Blank

  • Kenneth W. Erickson

  • Charles B. Moss

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free